- Bled Cassidy Manufacturing Corporation Has A Traditional Costing System In Which It Applies Manufacturing Overhead To I 1 (575.32 KiB) Viewed 12 times
$119.03
$190.70
$213.67
$71.67
bled: Cassidy Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, VIP and Kommander, about which it has provided the following data: VIP Kommander $ 27.50 $ 62.10 Direct materials per unit Direct labor per unit Direct labor-hours per unit $ 15.60 $ 52.00 0.60 2.00 15,200 Annual production 40,200 The company's estimated total manufacturing overhead for the year is $2,558,568 and the company's estimated total direct labor-hours for the year is 54,520. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Estimated Overhead Activities and Activity Measures Cost Assembling products (DLHS) $ 990,000 408,888 Preparing batches (batches) Product support (product variations) 1,159,680 Total $2,558,568 4 VIP Kommander Total 24,120 30.400 54,520 DLHS Batches 1,478 1,046 2.524 Product variations 2,622 1.218 3,840 Unit overhead cost of Product Kommander under the activity-based costing system is closest to Expected Activity